Fitch Ratings launched its Maturity Repayment Index, which measures the proportion of the total matured loan balance that has been successfully repaid.
Only 34 loans have reached their scheduled maturity dates and the agency said that it expected repayment of matured European CMBS loans are expected to remain at current low levels until at least the end of the year, primarily due to the loans' high loan-to-value ratios (LTVs), Fitch Ratings said.
"All of the 10 successful loan repayments to date were of loans originated in 2005 or earlier," said Gioia Dominedo, senior director in Fitch's European CMBS team. "While this bodes well for 2010, as 51 of the 73 loans maturing in the remainder of the year are from early vintages, an early origination date does not in itself guarantee an orderly repayment. Factors affecting the availability of replacement debt financing — in particular, leverage and loan size — are crucial when determining likely maturity outcomes."
Fitch said that bank funding for investment properties is once again available, although difficulties remain in obtaining debt financing in very large volumes. Of the remaining 73 loans maturing in 2010, 49 reported whole loan LTVs in excess of 80%, implying that significant equity contributions would be required in order for the loans to refinanced.
Fitch's European CMBS Maturity Repayment Index currently stands at 16%. The index is expressed as a percentage, with 100% indicating a full repayment of all loans that have reached their maturity dates.